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[October 2009]
HeidelbergCement Successfully Issues Eurobonds
HeidelbergCement reports that it has issued three tranches of Eurobonds with a total issuance volume of €2.5 billion. The bonds were placed with institutional investors mainly throughout Europe, comprising a €1 billion five-year, a €1 billion seven-year as well as a €500 million ten-year transaction. The proceeds of the combined transaction will be exclusively used to partly repay the syndicated loan, resulting in a significant reduction of the company’s bank debt. The Eurobonds received strong investor interest and were several times oversubscribed.
“The successful placement of the bonds furthermore underlines the confidence of the capital markets in HeidelbergCement’s strategy and strongly supports the improvement of the liability profile of the company,” said CEO Dr Bernd Scheifele.
The 5 year bond bears a fixed coupon of 7.5% pa, whereas the 7 and 10 year tranches have coupons of 8% and 8.5%, respectively. The issue prices for the tranches are 98.465%, 97.349% and 96.739%, resulting in respective yield to maturities of 7.875%, 8.5% and 9% for the 5, 7 and 10 year tranches. Bookrunners of the transaction have been Deutsche Bank, Royal Bank of Scotland, Bank of America/Merrill Lynch and Commerzbank. The notes are issued as bearer bonds in a denomination of €1,000. Interest is paid on a semi-annual basis.
HeidelbergCement is the global market leader in aggregates and a prominent player in the fields of cement, concrete and other downstream activities, making it one of the world’s largest manufacturers of building materials. The company employs some 57,000 people at 2,600 locations in around 40 countries.
ENDS